Big Drive Auto three alternate economic futures

Big Drive Auto - but are less costly for consumers to operate 2 Return to economic Status Quo In this scenario the economy will resume the course

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There are three economic futures possible for Big Drive Auto in the next five years. The company must be aware of the importance of these possibilities it could be facing. The previous few years have been a trial economically for the nation as a whole. In order to have continued success as a company it is crucial to be prepared for all economic possibilities. The following three forecasts are ranked from most likely to least likely in occurrence. 1. The Economy Normalizes: In this scenario new laws will be passed that will be passed that lower carbon emissions standards and increase buyer incentives to purchase such autos. Buyers will become more selective of purchases than they were before the economic collapse. Automobiles with increased fuel efficiency will become highly demanded. Alternative fuels will become much more widely used and will have more availability at the pump, effectively keeping the price of gasoline in check. This will increase profit margins for dealers because of increased auto prices,
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Unformatted text preview: but are less costly for consumers to operate. 2. Return to economic Status Quo: In this scenario the economy will resume the course it was on before the collapse. Sales of automobiles will rise slowly based on a steadily increasing disposable returning to consumers. Service and repair will continue to see a steady increase, while sales of oil, tires and coolant will continue to decrease. 3. Protracted Tight Global Credit Availability In the final scenario, and least likely, credit will remain very tight and banks will increase terms on credit. There will be a reduction in available public services, and an increase in taxes. Undercapitalized companies will continue to cut payroll, loans may defaulted on, and an increase in unemployment will lead to a reduction in sales across the board. Failures of current auto manufacturers may lead to brands being bought by foreign companies, the government could reduce tariffs on these autos. This. .....
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This note was uploaded on 07/29/2011 for the course ECON 561 taught by Professor Assefamuluneh during the Spring '10 term at University of Phoenix.

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Big Drive Auto - but are less costly for consumers to operate 2 Return to economic Status Quo In this scenario the economy will resume the course

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